Answer:
4.5 and 3
Explanation:
We know that
Real exchange rate = Nominal exchange rate × (Cost of the basket in US ÷ Cost of the basket in Norway)
So according to this formula, the computation is shown below
When the nominal exchange rate is 3, then the real exchange rate would be
= 3 × (60 ÷ 40)
= 4.5
When the nominal exchange rate is 2, then the real exchange rate would be
= 2 × (60 ÷ 40)
= 3
Answer:
production of different types will compete for limited resources.
Explanation:
The production possibilities model is also known as the Production–possibility frontier. It is the visual model of efficiency and scarcity. It provides the concept of how the economy can change things by using two goods as an example. It determines the trade offs that is associated with the allocation of the resources between the production of the two goods.
The production possibilities curve or model shows the inverse relationship between the two goods and the services as producing different types of products or services will complete for the limited resources available.
An economy has a very limited economic resource and therefore it can produce more number of one good by making only less of some another good.
Answer:
Explanation:
The market value of debt is the present value of all future cash flows in servicing the debt.
we need to identify the present value of the future cash flows as follows
Year no of receipts Cash flow Discount factor present value
1-7 7 70 5.1185 358.296
7 1 1000 0.5649 564.926
Present Value 923.222
Annuity= P=R(1+(1+i )^-n) /i
Annuity= P=70(1+(1+8.5%)^-7/8.5% = 5.1185
Compound = S=P(1+i)
Compound =P=1000/(1+8.5%)^7 = 0.5649
the value of the bond is = 923.222
Answer:
True
Explanation:
Prevention Cost is the cost which is incurred to avoid the loss due to defects in the products manufactured, here the cost incurred is as follows:
Training employees that is the benefit from training will be reducing cost and improving quality of the product, therefore, it will be considered as prevention costs.
Further cost incurred for redesigning products and processes will improve the quality of the product and the process therefore this cost can also be considered as prevention costs.
Final Answer
The above statement is true.
<span>The attractiveness test asks the question: is the industry profitable or capable of being profitable. It is a fundamental test for managers and investors and helps to establish a baseline of performance expectation. An answer of 'no' to the attractiveness test indicates that the industry is not likely to be a good investment.</span>
